The Official Mortgage Rates Thread

[gr1]

and how we can get a hold of you and what references you have

[doodling]

if anyone is interested in understanding how mortgage brokers are paid, check out Hubster's excellent post:

http://www.redflagdeals.com/forums/s...d.php?t=359246

I am a mortgage broker, have been a member of this forum for quite a while and will attempt to define how we are paid. If I may...

Mortgage brokers are paid a referral fee/commission by the lending institution where the mortgage is placed. They are paid a percentage of the total mortgage amount with a different commission percentage for different terms - i:e: 5 years term pays more than 3 years.

While most lenders differ slightly, "A" lenders (banks, mortgage companies, ets.) pay anywhere from .75 to .95 basis points for a typical new 5 year mortgage. On every $100,000 of mortgage that would be $750 - $950.

Alternative lenders, who deal in hard to place mortgages, may pay as high as 1.80 basis points for funded deals. That's $1800. on every $100,000.

Private lenders are available who will lend to just about any warm body - but obviously their rates are significantly higher and there will be additional fees payable as these investors do not pay us basis points. Our payment will come from the customers own resources, known as broker fees.

Some brokerage houses or individuals recieve additional commission and/or incentives from specific lenders for their continued or additional business. Volume bouses are also available to the broker.

Soooo... you need to be sure that that the broker is not pushing you towards one particular institution nor term for their own financial or career benefit. Unfortunately, like most industries, a few ethically challenged can give all a bad name. You should expect to recieve viable options and reasons why each may be best for your situation now and suit your short and long term financial goals. Ultimately YOU decide what is best for you and your family and understand why you are making that choice.

I find it almost laugable how these forum noobies are now flaunting their "mortgage services" at every opportunity - scouring the threads and posting rates at will. Annoying popups come to mind you can almost smell the desperation. If they were truly enlightened at their positions, they should be the first to offer up that rates, why obviously important, are but a very small part of what should concern most folks when mortgage financing is required.

I have personally never felt the need to sell myself on here and attempt to let my posts serve as information, not self promotion. I believe that's what these forums were created for - it's not Buy Sell Trade. Knowledge is power and I see our role as being the provider or gateway to that education. If an opportunity to assist arises from here, as it certainly does, then that is wonderful - but I see that as a byproduct of what you provide, not ALL you offer. Stepping off soapbox.

[Mortgageguy]

I can tell you how we get paid:
There are 2 components to our compensation:
1) we make between .75% - .85% commission on the mortgage amount
2) we get a volume bonus of .25% - .30% on the mortgage amount.

So, for example, for a $200,000 mortgage, we earn between $2,000 and $2,300. This is for a typical 5 year mortgage. For a shorter term we earn less and for a longer term we earn more.

So do the math. The average mortgage take about 1-2 hours end to end. doing 2 deals a day nets you $4,000 a day, $20,000 a week, $1,000,000 a year. Not bad for a 20 hour work week!

[re-guy]

October 18 2006
Rate Sheet

http://img47.imageshack.us/img47/4109/ratesheetef9.png

[Hubster]

[QUOTE=Mortgageguy;4115760So do the math. The average mortgage take about 1-2 hours end to end. doing 2 deals a day nets you $4,000 a day, $20,000 a week, $1,000,000 a year. Not bad for a 20 hour work week![/QUOTE]

LMAO

Yahhhh OOOKKK - yet you still feel the need to troll internet forums for business Too funny

No one asked you how MUCH you got paid. And your inclusion of your fantasy income here just further illustrates what I said above about self-promotion.

Have an ounce of class man!

[Mortgageguy]

Like I said, we buy rates down so that nobody can beat our rates. We do 4-6 deals a day. People use us because we share our commissions with our clients via a lower rate.
Case in point. Look at the link above supplied by re-guy. His best 5 yr rate is 5.25. Last time I checked 4.89% was a better deal.
If you like, we would consider hiring you and helping you and your clients as well. Send me a PM with your resume and will consider.

[Hubster]

Well if you are now talking in the WE realm, how does 1600 deals a month sound? You think that brings just a little barganing power and unlimited options for clients?

You are a typical "me too" salesman whom attempts to overwhelm individuals with flash (stating personal income, whatever relevance that has) and perceived substance (lowest rates, lowest rates, lowest rates, etc.)

If you have any further witty remarks for myself, confine them to PM,s. This forum and this thread are not your personal blog for hijacking. End of discussion.

[Mortgageguy]

That explains alot. You work for one of the super brokers who hire anybody. Say no more. I rescind offer of employment.

[Hubster]

That explains alot. You work for one of the super brokers who hire anybody. Say no more. I rescind offer of employment.

You are without a doubt, one of the most self-important individuals I have ever had the displeasure of witnessing. Do you have a mirror in every room of the house?

Such a typical scenario: desperate broker finds this forum, salivates at opportunity to do ANY businesss, comes in with guns ablazing and flaunting so called personal claims, attempts to discredit all existing members, gets highly defensive when called on, ultimately takes sleezy game further down the gutter when he discovers there is no easy prey here. Ony one step left for you stud.

You obviously have some comprehension issues, so I REPEAT: If you have any further "witty" remarks for myself, confine them to PM,s. This forum and this thread are not your personal blog for hijacking. End of discussion

Unortuntely, I suspect you are much to ostentatious for PM's - no audience there to fill your obvious need for adulation.

[leafs]

Who gives a crap about this! We want the best mortgage rates that can be offered as well as what fees and and services will be covered. Please post them for all to see so we can make informed decisions before we start our mortgage shopping. If not leave the thread alone and go argue elsewhere about Shite people don't care about.

[atb1o1]

agreed. If you have good rates or know of someone that can provide good rates and good services post it so we can be informed.

[controlyar]

agreed. If you have good rates or know of someone that can provide good rates and good services post it so we can be informed.

There is more to a mortgage than the interest rate. *sigh*.
This is how brokers make their money....the "majority" of them just spew LOW RATES LOW RATES with no consideration to their client and if the lowest rate is the suitable option for their clients. As you can tell, this was proven by the brokers posting in thsi thread.

[doodling]

alright, lets try to keep this thread informative ok...

speaking of which, going through my own mortgage process i find the "ask and you shall get" advice is true most of the time. may be people already know this but most lenders/brokers will pay legal/appraisal costs out of pocket. that'll saves us new home owners some money. not much mut any kind of savings is good!

[atb1o1]

alright, lets try to keep this thread informative ok...

speaking of which, going through my own mortgage process i find the "ask and you shall get" advice is true most of the time. may be people already know this but most lenders/brokers will pay legal/appraisal costs out of pocket. that'll saves us new home owners some money. not much mut any kind of savings is good!

Now that is good to know, thanks!

[Rosico]

I am trying to decide between two products. One is a -.95 off prime variable rate from ING and the other is a -1.00 off prime variable rate from Industrial Alliance. Both are for 5 year terms and the prepayment on the later is a little less than the former (25% vs. 15% so not a biggy to me).

The question I have is, if I wanted to switch from a variable to a fixed term rate, do I have any flex room in negotiating this rate with the lender or am I stuck with the posted rate?

If that is the case, I may go with ING since their posted rates are more competitive than what I can see from Industrial Alliance (even though, I do tend to love variable!).